A new 3p-per-mile tax is set to be applied to electric cars from April 2028, Chancellor of the Exchequer Rachel Reeves has confirmed in today’s Budget.
The measure, which was widely expected following reports earlier this month, will also include a 1.5p-per-mile charge for plug-in hybrids.
The charges will be payable alongside Vehicle Excise Duty.
Also included in the Budget was the news that fuel duty will continue to be frozen, as has been the case since 2010-11, while the extra 5p reduction that was introduced during the Covid-19 pandemic has been extended until September 2026, although it will then be gradually removed by March 2027.
Other motoring-related Budget measures include increasing the threshold for the Electric Car Supplement on EVs to £50,000, and an extra £1.3 billion in funding for the Electric Car Grant, which has been extended until 2030.
